ATLANTA (WSAV) — President Biden signed the CHIPS and Science Act Tuesday to pump $53 billion into the U.S. semiconductor industry.
The White House said the Chips Act will increase research and production of semiconductor chips and provide U.S. companies a 25% tax break for domestic manufacturing.
“As you know post COVID, there has been an impact on the supply chain and that is heavily dependent on Taiwan and China and we are not going to see in the near future,” said Ramnath Chellappa Business Professor at Emory University. “It will take time for the supply chain to readjust themselves.”
The shortage of semiconductor chips is impacting the production of computers, washers, fridges, video games, smartphones, and military equipment.
“There is a chip inside a fridge, washer, your car, and computers have two kinds of chips,” Chellappa said.
Biden said it will help the U.S. stay competitive and increase production rates by five times.
“It will strengthen our manufacturing, boost our supply chain and make positive changes to our national security,” said Jared Bernstein, White House, Council of Economic Advisors.
“Atlanta and Georgia have fantastic education institutions with Georgia Tech, UGA, Emory and these are to benefit from research and scholarships,” Chellappa said.
Auto experts say if you are looking to buy a new car, your options may be limited because of supply chain issues. Professors at Emory say the chip shortage has translated to higher prices for even used cars — not just new cars — because of chips used in the key fob.